Man Utd redundancies: Up to 200 staff to be made redundant

Manchester United has announced plans to cut up to 200 jobs in a bid to "restore the club's profitability." This follows the first round of cost-cutting measures implemented last year by co-owner Sir Jim Ratcliffe, which resulted in the layoff of approximately 250 employees. The move is aimed at reversing the club's five consecutive years of losses since 2019.

Manchester United CEO Omar Berrada informed staff at a meeting on Monday that a new round of redundancies would be carried out as part of a "transformation plan." The club stated that, following a consultation process with employees, "approximately 150-200 roles may be made redundant," and the process is expected to take three to four months. As of June 30, 2024, Manchester United had 1,140 employees, meaning the job cuts could affect up to 39% of the club's total workforce.

The club added that these additional measures are being taken to "improve the club's financial sustainability and operating efficiency." "This will create a more solid financial platform from which the club can invest in success on the pitch for our men’s and women’s teams and improve our infrastructure." Berrada stated, "It is our responsibility to put Manchester United in the best position to succeed on the pitch for our men’s, women’s and academy teams." He emphasized that these tough decisions are necessary to restore the club to a stable financial footing, noting that the club has been loss-making for five years in a row, a situation that cannot continue.

Berrada further explained, "The two major priorities for our club as a club are to achieve success on the pitch for our fans and to improve our facilities. We cannot invest in those goals if we continue to lose money." Manchester United also announced the appointment of Mark Armstrong as the club's Chief Commercial Officer. The transformation plan will include some staff moving from Old Trafford to the club's Carrington training base, and maintaining a smaller presence in London, but all of the club's leadership will be based in Manchester, including Armstrong.

Since Ratcliffe's investment in Manchester United, he has announced a series of cost-cutting measures. The club previously stated that the first round of redundancies would save between £40 million and £45 million. Ratcliffe had warned that more "tough and unpopular decisions" would be taken to get the club into the shape he expects. Matchday ticket prices have risen to £66 per game, with no concessions for children or pensioners. Ratcliffe has yet to decide whether to rebuild Old Trafford (potentially costing £1.5 billion) or build a new stadium (potentially costing over £2 billion).

Ratcliffe's INEOS group completed a deal for a stake in Manchester United worth around $1.6 billion (£1.25 billion) in February 2024. INEOS subsequently took control of football operations at Old Trafford and quickly began a restructure, appointing Ashworth as sporting director, Berrada as chief executive, and Jason Wilcox as technical director. In June, INEOS opted to keep Ten Hag as manager, but subsequently fired him and his coaching staff, costing £14.5 million. Manchester United paid Sporting Lisbon £11 million to hire Ruben Amorim as Ten Hag's replacement, and then paid £4.1 million in November to hire and then fire Ashworth.

Manchester United's latest accounts showed an annual net loss of £113.2 million as of June 30, 2024. This followed a loss of £28.7 million in 2022-23 and £115.5 million in 2021-22, with total losses exceeding £370 million over the past five years. In Ratcliffe's first full season as co-owner, Manchester United could finish in the bottom half of the table for the first time since 1989-90, when they finished 13th in the old First Division.

Based on the Premier League's "merit" payments from last season, if Manchester United maintains its current 15th position, they will receive £16.9 million, nearly £20 million less than the £36.7 million they received for finishing eighth last season. Winning the Europa League is the team's only realistic route to qualifying for next season's Champions League, and if they fail to do so, their sponsorship deal with Adidas will be reduced by £10 million per year. This could further increase the pressure on Manchester United's chances of strengthening Amorim's squad in the summer, and will put greater scrutiny on the wisdom of so many of Manchester United's recent transfer deals.